Fraud in the Inducement

Definition - What does Fraud in the Inducement mean?

Fraud in the inducement is when a person tricks another person into acting against their own best interest. For example, if a person claims to be an agent of the IRS, and sends a bill of t$10,000.00 to a person who then pays it to the person who mailed it, this would be fraud in the inducement.

Justipedia explains Fraud in the Inducement

Fraud in the inducement is basically deception that results in a person accidentally causing inancial or other types of losses or damages to themselves. It could involve tricking a person into signing a contract, into voiding a contract, into paying a false bill, or many other types of deceit. A person who is caught committing fraud in the inducement can face criminal charges and various sentences including lengthy jail time. In order for it to be fraud in the inducement, a person must be induced to act to their own detriment, without knowing that they are doing so.

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